1. UNIT III

2. A managerial problem can be described as the gap between a given current state of affairs and a future desired state. Problem solving may then be thought of as the process of analyzing the situation and developing a solution to bridge the gap. While it is widely recognized that different diagnostic techniques are appropriate in different situations, problem solving as a formal analytical framework applies to all but the simplest managerial problems. In both cases, the purpose underlying the analytic process is to minimize the influence of the investigator's personal biases, maximize the likelihood of an accurate result, and facilitate communication among affected parties.

3. The problem-solving framework can be used in a wide variety of business situations, including both large-scale management-change initiatives and routine improvement or corrective activity. Indeed, management consultants may be thought of as professional problem solvers. By relying on the proven problem-solving framework. External consultants are often able to overcome their lack of specific industry experience or knowledge of an organization's internal dynamics to provide meaningful analysis and suggestions for improvement.

4. Steps in problem solving are: 1)Problem Awareness: To solve a problem one need to first become aware of it and acknowledge that it exists. Becoming aware of interpersonal problems in not always easy, however following things below should be considered for problem awareness. a) Establish Trust: To obtain active participation form others involved ina problem. One need to ensure that they feel understood and accepted. They need to have confidence that the problem can be resolved and they need to trust that one will see the problem as a learning experience and not as a reason for punishment. b) Clarify Objectives: Objectives must be said and clarified before current situation can be assessed. Objectives provide guide lines for one’s behavior and basis for measuring the effectiveness of one’s relationship c) Assess the current situation: The current situation should be assess to determine if ones need are being met. If there are any mismatches the next step is to determine why. 2) Problem Definition: If the problem is not defined clearly any attempt to solve it will fail b’cos the parties involved would not really know what they are working on. Defining the problem involves the following a) Analyze Problems: If a problem is defined accurately and analyzed completely, it provides a safe guard against incorrect assumptions treatment of symptoms, only an incomplete understanding failure to define and identify problem accurately can impede consideration and eventual application of the best solution

5. against incorrect assumptions treatment of symptoms, only an incomplete understanding failure to define and identify problem accurately can impede consideration and eventual application of the best solution b) Agree on problems to be solved: If more than one problem has been identified the next step is to set priorities regarding which problem will be worked on first and which ones will be put aside temporarily or indefinitely. The most important problem should be dealt with first even if their solution seem more difficult 3) DECISION MAKING: After the problems has been identified an analyzed the next step is to develop a course of action that will improve the relationship to an acceptable state. Decision Making involves the following steps: a) Establish Decision Making Criteria: Decision Making criteria are statements of objectives that need to be met for the problem to be solved. Effective criteria should be specific measureable,attainable,complementary, ethical and acceptable to those who will implement the decision. b) Develop Action alternatives: Involving all concern parties in the generation and analyze of alternative enhances the value, acceptance, implementation of an action plan. As many solutions as possible should be generated to avoid picking a pre mature one that does not meet all the long

6. long run criteria C) Evaluate Benefits and Risks of Alternatives: It is important to look at all the long run consequence of the alternatives being considered. Important criteria evaluating action alternatives are each alternatives probability of success and associate degree of risk that negative consequence will occur. If the chance of failure is high and the relative cost for alternative are great, the benefits may not justify its use. d) Decide on a Plan: As alternatives are evaluated according to these criteria, many will be clearly and satisfactory can be eliminated. Several alternatives will appear feasible, but the best one must be selected. 4. Action Plan Implementation: An action plan is little value unless its effectively implemented. How the action plan is to be accomplished connect the decision with reality. Action plan implementation involves the following steps: a) Assign tasks and responsibilities: Task and responsibilities should be assigned to each person to make new action plan work and to avoid misunderstandings. b) Establish an Implementation schedule: To be effectively implemented all necessary tasks need a specific schedule for completion.

7. Action implementation steps can be listed in priority order and assigned reasonable time periods for completion, starting with the last step before the objective is accomplished. 5) FOLLOW THROUGH: Once an action plan is implemented, people often move on to another task following through entails the development and maintenance of positive attitudes in everyone involved in the implementation process. The steps involved in the follow through progress these are as follows: a)Establish Criteria for Measuring Success: Unless the circumstances are changed, time,quality and quantity goals are the criteria that serve as benchmarks for measuring problems, solving success and comparing the actual results. b) Monitor Results: Actual results should be compared with the established criteria. If the new performance meets the criteria, no further action is necessary other than continued monitoring. If the new results donot measure up, the next step is to determine why. 6)TAKE CORRECTIVE ACTION; If performance fails to match the success criteria, the problem needs to be identified by again applying the problem solving process. For any new corrective action plan, new measures and schedules need to be determined and new data need to be gathered and tested again.